OPEC+ Keeps Oil Output Unchanged Amid Ongoing Iran Conflict
OPEC+ has decided to keep its oil output policy unchanged for October in a meeting on Monday. The decision was made due to the ongoing Iran war, which continues to disrupt oil exports through the Strait of Hormuz and limit OPEC+'s influence over prices and market share.
The group agreed to boost production by 1.65 million barrels per day from September, as part of a phased rollback of a supply cut first implemented in 2023. However, despite these increases, OPEC+ is still producing below its targets due to the ongoing conflict.
Jorge Leon of Rystad Energy said that OPEC+ currently has 'very limited power over the physical oil market.' He added that while the group can change production targets on paper, it cannot guarantee that those barrels will be produced or reach the market.